If you are interested in buying Bitcoin and you don’t know how to and from where you can get them without any risks.
Here is the complete guide for beginners who are going to buy Bitcoin for the first time. You will get all the relevant information about Bitcoin, from where and how can you get the Bitcoin, and ways to do a risk-free and safest investment.
Purchasing Bitcoin from genuine and trusted places is important to ensure that your funds will be secure, and you will be safe from any type of fraud. The trusted sources will provide you with extra security, two-factor authentication, and also standards to detect fraud. So it’s important to do homework before buying Bitcoin.
Bitcoin:
Bitcoin is a digital currency also known as cryptocurrency started in 2009. It is a decentralized asset not controlled by a single person or organization which makes it unique and different. It works on a blockchain and all the transactions are transparent and viewed publically. Also, the transactions are made anonymously without knowing the identity of the person.
Bitcoin prices are admiringly variable and keep fluctuating with time. It may rise in one day and goes down the other day or at any moment in 24 hours. This makes the investment risky as there are chances of loss equally as the chances of profit in this game.
Bitcoin can be compared to gold because of its finite supply. Only an amount of 21 million Bitcoin tokens keeps in circulation. Also, it is an inclusive asset class that anyone can buy and sell at any time 24/7/365. And on adding the funds to the private wallet, no one can access the funds except the owner.
How to Buy Bitcoin:
Do your homework first, search for the trustable platforms that sell cryptocurrency, and also get important knowledge about Bitcoin, risk factors, pros, and cons, etc. Then follow these steps to buy Bitcoin.
1. Decide the Platform to Buy Bitcoin:
Different crypto exchanges sell cryptocurrency. All you need to choose the best one according to your needs and which is also available in the region where you live. Most beginners use to choose a platform that is easy to use and simple to understand. While advanced investors go for exchanges that have low fees and provide advanced charts and insights for their trade.
2. Choose a Payment Method:
On buying Bitcoin online, for example from the crypto exchange, a bank transfer is the better choice for payment. You can also use debit or credit cards as the Bitcoin ATMs accept most major credit cards. And if you want to buy the Bitcoin straight from the app you need to pay through Venmo or PayPal.
3. Decide the Amount you Want to Invest:
Primarily people don’t buy a full Bitcoin as it costs tens of thousands of dollars which is so expensive. So people usually purchase a fraction of it according to their budget. You need to decide first how much you want to invest in Bitcoin as it is a risky investment because of the frequent variations in the price of a Bitcoin.
4. Add your Bitcoin to the Crypto Wallet:
To fully owned your coin, you must add it to the crypto wallet, which only you can access. And make sure that only you have the password for that wallet. But if you don’t add it to a private wallet it means that coin is not entirely yours. The best practice is to set two-factor authentication for additional protection.
Where to Buy Bitcoin:
Most people use to buy Bitcoin from crypto exchanges or directly from trading apps. Both accept the amount in dollars through the bank account or cards (credit or debit cards). So these are the most convenient and easy ways to buy Bitcoin as compared to other methods.
If you have trouble deciding which crypto exchange is best for you, we will provide you a list of them below, that will help you choose the best one according to your needs.
Different Ways to Buy Bitcoin:
Finally, if you are willing to buy Bitcoin, there are various ways we are going to explain to you to help you to get Bitcoin swiftly and securely at less prices.
- From Crypto Exchanges
- From traditional brokers
- From Trading App
- Via Cash App
- Via PayPal
- Via Venmo
- Via Crypto wallet
- Via Bitcoin ATM
- Peer-to-peer Marketplace
1. Buying BTC From Crypto Exchanges:
The most common way to buy BTC is from the crypto exchanges. There are many crypto exchanges present in the market, we will discuss some of the most used and famous exchanges later. These exchanges also enable you to buy other cryptocurrencies as well.
Different investment styles and facilities are provided by different crypto exchanges. Some allow instant buying of the currency through debit or credit cards or bank transfers. While some exchanges offer a bit more advanced method of purchasing BTC through bidding and offers. This method is somewhat difficult but it will cost low fees for trading bitcoin.
After purchasing BTC make sure you transfer it to a personal wallet because saving it in a centralised platform like an exchange is highly vulnerable to hacking attacks like phishing. You can also face mismanagement by the exchange operators, that’s why you can’t fully trust the exchanges.
| Pros | Cons |
| A direct and easy method to buy BTC. | You can not trust fully to keep your assets in exchange. |
| Accessible method to users of all experience levels from beginner to advanced. | Your assets are at higher risk of hacks, and phishing attacks. |
2. Buying BTC From Traditional Brokers:
Some of the brokers also allow you to buy mutual funds, stocks, and bonds and also allow you to buy and sell particular cryptocurrencies. You can buy financial products like Bitcoin futures products or shares of GBTC (Greyscale Bitcoin Trust).
Technically you don’t own Bitcoin when you purchase Bitcoin-related products. The best examples of these brokers are Robinhood and Charles Schwab.
| Pros | Cons |
| Through traditional investment platforms, you can get some exposure to the Bitcoin price action. | You don’t technically own Bitcoin but the financial products, used for speculative goals. |
3. Buying BTC From Trading Apps:
Trading apps allow you to manage cryptocurrency as well as stocks in the same place. If you have experience and are familiar with trading apps like Robinhood, SoFi or Weibull etc then you can easily buy your BTC by using these apps.
But, these apps will not give you full control over your coins. You cannot transfer the coins to other platforms as well as a personal wallet. Hence you can’t get a full experience of using crypto and your assets are not fully secured.
| Pros | Cons |
| An easier and simple way to get BTC. | Apps declare no fees but may charge extra fees in the spread. |
4. Buying BTC from Cash App:
Cash App is also one of the easy and convenient apps to buy Bitcoin. The whole process is so simple and speedy.
Like PayPal and Venmo, the cash app also charges higher fees. You have to pay 1.75 percent of the Bitcoin purchase, which is much greater than the standard crypto exchanges.
The main and vital difference between the Cash app and Paypal and Venmo is, unlike these apps Cash apps allow their customers to transfer funds from their wallet to any other wallet, to make your investment more secure.
| Pros | Cons |
| You can send your assets to other personal wallets, or offline wallets in additional protection. | It is also an expensive app to buy Bitcoin. |
5. Buying BTC On PayPal:
It is the most convenient and easy way to buy Bitcoin on PayPal as it has a simple interface. PayPal has a special fraud protection facility, so you can make purchases from millions of online stores using bitcoins on your PayPal account.
You can also transfer the funds from PayPal to some exchanges that accept PayPal as a deposit method. And can buy bitcoins directly from those exchanges. But PayPal itself keeps the captivity of the coins and doesn’t allow you to transfer the funds to a personal wallet.
The prices for Paypal are a bit higher than the other traditional crypto exchanges for purchases over 200 dollars. As it costs 1.8 per cent fees that is way too much compared to others. So if you want to make a larger investment PayPal is not the fair option.
| Pros | Cons |
| A quick and easy platform to buy Bitcoin | It is an expensive platform compared to other crypto exchanges |
6. Buying BTC From Venmo:
Just like PayPal, Venmo is also an easy platform and provides a user-friendly interface. You can easily buy BTC through this platform.
Likewise, it also cost larger fees as compared to most of the crypto exchanges. It costs you 1.8 percent on purchases between 200 dollars to one thousand dollars. And you can’t also transfer the assets to external platforms like personal wallets etc.
The difference between PayPal and Venmo is, that you can post your purchases of Bitcoin as Venmo is a social platform, unlike PayPal.
| Pros | Cons |
| Venmo is a convenient app to buy Bitcoin. | You can’t transfer your funds to a personal wallet. |
7. Buying BTC From a Crypto Wallet Interface:
Hardware wallets are also a good way to purchase Bitcoin. Hardware wallets like Changelly and Simplex offer exchange services, that are incorporated into software apps for the crypto wallets from companies like Trezor. You can use credit or debit cards as your payment method.
Hardware wallets are the most secure way to protect your Bitcoin, as the security fully depends on you. All you need to keep your key protected, if you lost the key you can’t access your funds.
| Pros | Cons |
| You have full control of your investment. | Learning blockchain usage is hard and vulnerable to human errors. |
| Your investment is fully secured by the Bitcoin blockchain. | Transactions are irreversible. |
8. Buying BTC from Bitcoin ATM:
Bitcoin ATM is the method to purchase Bitcoin from a physical location. First, you need to set up a digital wallet to transfer the Bitcoin. Then by using cash, or a debit card, you can purchase Bitcoin, and transfer it to your crypto wallet to make it secure.
However, purchasing Bitcoin from the ATM is an easy way and has immediate transactions of cash. But these are available only in some locations and charge higher amounts of money than the traditional crypto exchanges.
This is a better choice for experienced users while engines may find it difficult to set up Bitcoin wallets and enter the long strings through the ATM screen.
| Pros | Cons |
| Easy and speedy method to buy Bitcoin using cash. | Charge higher fees and it’s confusing to put digital wallet information in ATM screens. |
9. Buying BTC From a Peer-to-Peer Marketplace:
For buying and selling cryptocurrency directly from one another, the P2P crypto marketplace is the best platform just like eBay. Paxful is one of the familiar P2P marketplaces to make deals and offers in cryptocurrencies.
Buying cryptocurrency from the P2P is quite a hectic task because it is difficult to constantly find sellers that are willing to sell their bitcoin at your desired amount. However, the order prices are fixed and usually a low or no fee is charged in this method. You may also get the bitcoin below the market value.
The P2P marketplace usually also supports a variety of fiat currencies like the US dollar.
| Pros | Cons |
| You can buy Bitcoin directly from the seller. | As compared to the spot market of OTC exchanges, P2P typically has less liquidity. |
| Hundreds of payment methods are available. |
So these are the different ways you can buy Bitcoin. As we compare all the methods the most affordable and easy method as well for beginners is the crypto exchanges. So let’s explore some of the genuine exchanges to make a secure investment.
Some of the Genuine Crypto Exchanges:
- Binance
- Coinbase
- e-Torro
- Crypto.com
- Bit stamp
- Kraken
- Coinsmart
1. Binance:
Binance is one of the largest crypto exchanges that was started in 2017. Now it supports over 350 different cryptocurrencies and offers a wide range of trading options. It is not one of the most user-friendly platforms.
A variety of payment options include credit or debit cards, bank transfers, and PayPal. Binance offers low fees, as users can buy Bitcoin for a commission of only 0.1 percent of the purchase.
All you need is to register an account and upload your ID. The user can deposit the funds through bank transfer or credit or debit cards. The payment fee varies from country to country. It also offers two factors of authentication for account security and cold storage.
2. Coinbase:
Coinbase is one of the familiar, beginners friendly crypto exchanges as well as wallet providers. It is based in the United States. It offers an easy signup method for beginners having no experience.
Investors can just start from 2 dollars and a lot of payment options are acceptable, including bank transfers, PayPal, and credit or debit cards. It charges higher fees and displays it only at the point of purchase. It offers advanced security with two-factor authentication and also provides cold storage for its customers.
3. E-Toro:
eToro is a well-known and overall best platform for trading cryptocurrency for beginners. It is also one of the largest platforms with more than 20 million investors from over 140 different countries.
Beginners can start with a deposit of only 10 dollars and offers an easy way to fund an account. It allows a variety of payment methods including credit or debit cards, PayPal, Skrill, Neteller, bank transfer, etc.
It also provides the best security with two factors authentication and also provides cold wallets for its customers. Also offers a copy trading feature that allows its users to replicate the portfolios of traders.
4. Crypto.Com:
Crypto.com is one of the best apps to purchase Bitcoin through a smartphone. It is one of the largest crypto exchanges with more than 80 million customers. You can purchase Bitcoin using a credit or debit card, bank transfer, PayPal, and other payment options. Users can also use a crypto.com visa card to convert any cryptocurrency including Bitcoin to money.
A bank transfer is the cheapest way to buy Bitcoin from crypto.com at just 0.075 percent commission. A 2.99 percent commission is charged from a credit or debit card. US users can deposit funds freely through ACH.
Crypto.com supports 250 different cryptocurrencies and also offers DeFi tools, saving accounts, crypto loans, and decentralized wallets.
5. Bitstamp:
Bitstamp is a European cryptocurrency exchange having a great reputation in the industry. It has been trading since 2011 and is a great platform for both beginners and advanced users.
Bitstamp allows different payment methods including wire transfer, credit or debit card, SEPA bank transfer, ACH, and UK Faster payments. The cheaper option is through a bank transfer. Monthly trades of less than 1000 dollars are fee-free, which makes Bitstamp the best place to buy cryptocurrency.
6. Kraken:
Kraken was launched in 2011 and is one of the well-established exchanges in the industry. It supports several digital assets and supports millions of traders around the world.
It allows a variety of payment options including bank transfers, credit or debit cards, and cryptocurrency deposits. The cheapest way is through a bank transfer. Credit or debit cards charged 3.75 percent of the purchases.
Kraken offers a Bitcoin margin account which is a plus point. It also offers support for leveraging Bitcoin futures and a Pro trading suite for experienced traders.
7. Coinsmart:
CoinSmart is also one of the familiar trading platforms for cryptocurrency including Bitcoin, Ethereum, Bitcoin Cash, and Litecoin. It accepts different payment methods and allows fiat withdrawal in five working days.
All you need is to make an account, in an easy way with an easier and quick validation process. After the verification is completed it will allow you to buy and trade different cryptocurrencies. You can have access to the cash on the same day as it is deposited.
Things to Consider Before Buying the Bitcoin:
Before choosing a method to buy Bitcoin one should consider the following things to avoid risks in the investment.
Safety:
The most important factor is the customer safety. Choose an exchange that holds a license from reputable bodies. Also, consider the security tools offered by the chosen platform. There should be two-factor authentication for account safety. Do not go for a platform that takes customer security for granted.
Cold Storage:
Cold storage is the servers that are not connected to the internet. Many exchanges offer cold storage to keep the funds safe for their customers. This will make the funds less susceptible to the hacker’s attacks.
Insurance and External Audits:
Check out the insurance policy of the exchange to get protection against theft. Which firms provide the insurance, how much is insured, and whether it carries out third-party audits and has an independent board? Do not compromise the security of your funds.
Payment Methods:
The beginners who are investing for the first time should also consider the payment methods, whether their preferred method is supported by the exchange or not.
The easier and quick way is to buy Bitcoin with credit or debit cards and through bank transfers. You should also know how much fees are charged by different methods. Mostly bank transfers are the cheapest way to buy Bitcoin.
Fees:
The costs at different crypto exchanges vary significantly. So need to check out the fees of each platform for buying and selling Bitcoin, and for depositing and withdrawing the funds. It’s important to havknowout what you should pay on the platform that you are preferring.
Crypto Trading:
Mostly, the investors of Bitcoin after having the experience also want to invest in other cryptocurrencies and want to begin the crypto trade. For this, you need to choose a platform that offers support for a good selection of other cryptocurrencies like Ethereum, Solana, Lite Coin, BNB, XRP, and the Cardano, etc.
There are about 26000 other alternative coins available in the market. So the investors have a lot of options and need to choose the platform that supports the desired altcoins.
Minimum Deposits:
The account minimum is also an important factor to consider before choosing a crypto exchange, especially for beginners. For example, Coinbase investors can start with a deposit of 2 dollars only which is the best option for beginners.
So, it is recommended that newbies should choose a platform with a little starting deposit. While some exchanges have much higher trading minimums that may be ok for the experienced investors.
User Interface and Understanding:
The user interface is very important as the whole trade is controlled and viewed through this screen. Having a user-friendly interface helps one to better understand the functionalities and usage of the platform.
A simple and easy-to-use interface is a better option for beginners as they are purchasing the coins for the first time and they may desire an interface as simple as possible. While the experienced investor may desire an interface with detailed insights, charting tools, order options, and other advanced features.
Also, many crypto exchanges offer knowledge-based tutorials, videos, and articles to better understand trading procedures. Because it is important to know how Bitcoin works before purchasing it.
Trading Tools:
Experienced investors should also check for the trading tools provided by the exchanges according to their requirements. Some of the crypto exchanges also offer high-level analysis tools, technical indicators, etc. And also leveraged products including Bitcoin futures and options are provided by some exchanges.
The futures products are used for speculations and come with expiry dates. Traders need to speculate on the prices of futures contracts, if speculated correctly, they may pay up the profit.
Customer Service and Bonuses:
Many exchanges offer bonuses and offers on the signup and less initial spending essentials. 24/7 customer support is mostly provided by the best exchanges. Most of them provide live chat support to better guide customers from all over the world.
Is it Safe to Invest in Bitcoin?
Bitcoin is generally a speculative investment and its prices are highly volatile. There are different risks associated with crypto investments one needs to consider before jumping into this trade.
1. Price Volatility:
The prices of bitcoins can rise and fall at any time, during the day or at midnight. They can change by 5% or more in a single which is very common. Investors need to speculate on the prices 24/7, you can get a profit if speculated correctly. You may also be likely to face a loss in this trade.
2. Exchange Susceptibilities:
Leaving your assets under the custody of the crypto exchanges may be susceptible to various risks including hacking, scams, theft, and also mismanagement from the organizers. Funds stored in exchanges have more chances to be the victim of hacking attacks like phishing. To keep your Bitcoin safe it is suggested to keep them in your personal wallets or cold wallets. And the important thing is to protect your wallet key so that no one can access your wallet.
3. Hacking Vulnerabilities:
The best practice is to keep the Bitcoin in cold wallets. The wallets that are not connected to the internet are called cold wallets. Any information or data connected to the internet has a full chance to get attacked by hackers.
4. Legitimacy:
Bitcoins and trading in Bitcoin and other cryptocurrencies are not legal in every country. Even the counties where crypto trading is legal have some restrictions and rules, certain Bitcoin and crypto services are banned in some countries. And some countries allow particular ways and particular companies to operate there. Others are not allowed.
5. Novel Technology:
As Bitcoin is a new technology and common people don’t have the knowledge and trust in this technology. So people who want to invest and save money in their wallets need to learn first about the procedures, risks, pros, and cons.
6. Irreversible Transactions:
The transactions once made are irreversible. So if you have sent the funds to the wrong address there is no way to refund your assets. So one needs to be careful and should check the address twice before making a transaction or before moving the Bitcoin from exchange to personal wallets or some other platform.
Final Words:
Get complete knowledge and do your homework first before purchasing bitcoins. As it is a risky investment so beginners need to start with a small amount and should take advice from an experienced trader or financial advisor. If you get satisfied, despite all the risks, and still want to jump in choose the best platform to buy BTC.
Make a list of attractive exchanges and brokerages, and compare the features and services provided by them, then choose the one that fulfills your need and is according to your budget. Then after purchasing the bitcoin set your goal and follow the rules.
Hope this article was helpful for you in getting all the relevant information about buying Bitcoin, and also the risk factors and safety measures associated with Bitcoin. Thanks for visiting.
